DISCONTINUED BANKING | The Banking segment consists primarily of Banca del Gottardo and is to be discontinued following the sale of this bank to BSI, which was announced in November 2007. Banca del Gottardo will be fully consolidated in Swiss Life’s financial statements for 2007 and up to 7 March 2008.
In 2007 the segment result came to CHF 168 million, up 46% against the previous year. Based on local accounting practice, Banca del Gottardo reported a net profit of CHF 129 million. Principal factors in the 32% year-on-year increase were higher operating income and reduced credit risk, which enabled provisions amounting to CHF 34 million after tax to be dissolved. Disregarding one-off special factors of CHF 17 million after tax, the net profit comes to CHF 111 million (+16%).
Income was down 6% to CHF 475 million compared to the previous year. Income from trading operations in particular, benefiting strongly from the favourable market conditions, improved by 19%. Interest income rose by 5%, and commission and service fee activities were up 4%.
Business expenses rose during the period under review by 2% to CHF 332 million. The slight increase was due mainly to a higher headcount and higher performance-based compensation paid. The cost/income ratio declined from 73% to 70%.
The net outflow in Private Banking customer funds owing to earlier staff departures was curbed in the second half of the year, rising by only CHF 0.1 billion to CHF 1.0 billion between 30 June and 31 December 2007. Customer assets under management (excluding custody business) totalled CHF 36.0 billion as at 31 December 2007 compared to CHF 35.8 billion at the end of 2006. Total assets under control amounted to CHF 101.1 billion as at 31 December 2007 (31 December 2006: CHF 89.3 billion).
| Key figures for Discontinued Banking |
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| Fiduciary and portfolio management fees | | 154 | | 191 | | –19.4% | |
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| Custody fees, trust and other fiduciary fees | | 66 | | 0 | | n.a. | |
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| Brokerage commissions | | 59 | | 66 | | –10.6% | |
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| Other fees and commissions | | 24 | | 34 | | –29.4% | |
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| Asset management and other commission income | | 303 | | 291 | | 4.1% | |
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| Financial result (without share of results of associates) | | 598 | | 318 | | 88.1% | |
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| Other income | | –9 | | 98 | | n.a. | |
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| Total income | | 892 | | 707 | | 26.2% | |
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| Interest expense | | –337 | | –189 | | 78.3% | |
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| Operating expenses | | –387 | | –403 | | –4.0% | |
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| Segment result | | 168 | | 115 | | 46.1% | |
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| Assets under control | | 93 492 | | 92 100 | | 1.5% | |
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| Number of employees (full-time equivalents) | | 1 016 | | 988 | | 2.8% | |
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